What happens with this loan if the deal with IMC is not finalized by Feb 25 2013?
During the nine months ended March 31, 2012, in conjunction with the transaction with IMC International Metalworking Companies B.V. (“IMC”) (note 15), IMC advanced $5,000,000 to Sangdong Mining Corporation (the Company’s wholly-owned Korean subsidiary), pursuant to a term loan agreement (dated February 26, 2012), for purposes of project advancement pending the closing of the transaction.
Interest on the aggregate outstanding principal amount of the term loan shall be capitalized and added thereto until the aggregate outstanding principal amount (including all previously capitalized interest) is paid in full on the Maturity Date. Interest shall accrue at 5.00% per annum on the aggregate outstanding principal amount (including previously capitalized interest) of the term loan. Total interest accrued to March 31, 2012 is $21,230.
The maturity date of the term loan is the earlier to occur of (i) the closing of the IMC transaction and (ii) the one year anniversary of the date of the term loan agreement, being February 25, 2013.